Einhorn Makes His Case Against Apple

2/19/2013 4:44PM

WSJ's Jessica Lessin joins The News Hub with a preview of the hearing on David Einhorn's motion for an injunction against Apple to block a shareholder vote on Apple's proposal to eliminate its ability to issue preferred shares without investor approval. (Photo: AP)

This transcript has been automatically generated and may not be 100% accurate.

... the the ... Michelle ... I know what makes his case to a judge will have back and mall ... right here right now on the New Saab good afternoon and welcome I'm Simon Constable ... the story about David Einhorn is battle against ... Apple ... Wall Street Journal's Jessica Lessin joins us now from sentences go ... that she is accepting adjusted up ... they sent me ... so tells about the online on what was somewhat isn't asking the judge to do and why ... six am right now we have this hearing going on in your palm over David Einhorn lawsuit against Apple ... and he's trying to sue to block a vote on a shareholder proposal that Apple's put forward ... an issue because the law passed to do with whether the company can issue preferred stock without getting shareholders approve of ... I'm and David Einhorn wants it to get work to do that so he wants to block this proposal which would require Apple to get shareholder approval to issue preferred stock ... and in this matter is this cuz in Wales found decided it investor unease about Apple's Cash palette using its cash ... so I was going in with a targeted attack ... to try to compel Apple to do something with it the hundred and thirty seven billion ... yen let's repeat that because that is an enormous amount of money hundred and thirty seven billion dollars in this is not the government with or in a this is a ... big company and Dom you know I know I know from Wall Street them a lot of people say well that that isn't Wolf a lot of cash but he still very technical with this estimate going into some of ... the logistics of proxy votes ... I and and I was comp are wary and he's been lobbying Apple to issue this type of preferred stock which can be ... a preferential for parity would have a separate I'm ... certain dividend schedule and when he argues be a great use for its cash that still gives the company a lot of flexibility ... I he's been blogging them for months on this Apple said this considering the proposal Apple's trying to separate the proposal from the shareholder provision which it said would be good for shareholders in the top end ... of the Tiger and inflating until he sees it as one after it and Dom ... Keane is really pushing the company to do something very specific on terror what shareholders and said he's not getting is way and so he's finding issue with ... on this one thing and their proxy which ... is scheduled to come to a vote on a week from tomorrow ... and and now he's making this case to a judge do we have any idea what the outcome is likely to pay or is it isn't too difficult the site ... reading right now or in the mix and arguments not in a New York District Court Judge tied to say I'm leading now they see you on a proxy for shareholder advisory firms ... and Glass Lewis and ISF have come out in favor of Apple on this proposal there again aam ... you know people to adopt day ... aam CalPERS is also sort of urging the same said there seems to be a lot of extra away says hey where ... agreed with Apple on this but there's also a lot of investor unease about Apple and ... and what it's doing with its cash so you've got a lot of people who are disgruntled ... we showed we surely do with that is not the case of the human rights thank you very much Wall Street gentle still be lasting and joining us now